On Oct. 17, 2002, Standard & Poor's Ratings Services affirmed its ratings on Allstate Corp. and Allstate Insurance Co. (AIC) and related group members (see ratings list). These rating actions reflect AIC's excellent market position, better-than-average underwriting returns, and strong capitalization. Outlook Standard & Poor's expects underwriting results as measured by the combined ratio to be at, or slightly less than, 100% by year-end 2002. Included in this estimate is an expectation that additional reserve strengthening will be required for prior-year auto and homeowners claims. The company is actively addressing the latter issue via rate actions and exposure reductions but the homeowners' line is not expected to meet management's profit expectations until early 2004. As part of its reunderwriting strategy,
